In March, Vodafone India and Idea Cellular announced the merger of their operations to create the country's largest mobile phone operator worth more than USD 23 billion with a 35 per cent market share.

As part of the proposal, Vodafone India will initially hold 50 per cent stake in the merged entity.

Later, the British firm will own 45.1 per cent of the combined entity while the Aditya Birla group, Idea's parent company, will hold 26 per cent after paying Rs 3,874 crore for a 4.9 per cent stake.

The remaining 28.9 per cent will be held by other shareholders.

According to sources, Sebi is examining the possibility if the proposed merger would trigger open offer under 'takeover' norms.

Under the takeover norms, if an entity acquires 25 per cent stake in a listed firm, it has to make an open offer for an additional 26 per cent from public shareholders.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)